The opportunity cost of receiving $10 in the future as opposed to getting that $10 today is:
A. the taxes paid on any earnings.
B. the foregone interest that could be earned if you had the money today.
C. the value of $10 relative to the total income of that person.
D. the value of $10 relative to the total income of all persons.
Answer: B
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Which of the following is true?
A) The share of government expenditure in the GDP of US has fallen over the last 80 years. B) The share of consumption expenditure in the GDP of US has increased over the last 80 years. C) The share of exports in the GDP of US has grown over the last 80 years. D) The share of exports in the GDP of US has fallen over the last 80 years.
Absolute advantage is
A) the ability to produce a good or service at a higher opportunity cost than one's competitors. B) the ability to produce more of a good or service than competitors that have fewer resources. C) the ability to produce more of a good or service than competitors when using the same amount of resources. D) the ability to produce higher quality goods compared to one's competitors.
At the equilibrium level of income it must be true that total
a. income equals total spending. b. product equals total output. c. output equals total inventory. d. income equals total saving.
Referring to a production possibilities curve and the goods being compared, depict the economic event. Computerization in the 1990s launched thousands of new businesses in the United States (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on the curve B. A movement from a point on the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)